Daily Commentary for September 20th, 2006

Missing You & Too Bad We Don’t Have Any Thai Baht Strategies

Good Tuesday Evening, Thursday Morning,

There was a plethora of crummy economic data from the three biggies: US, JPY, & EUR. Apparently the least poor of the three was the US housing data. In a sign of the times, there is little talk of the Fed Rate Decision tomorrow. I have a better chance of growing a second head, than the Fed does of raising rates. Amazingly enough, there are whispers of a possible rate CUT in the winter…that would be nice!

The coup attempt to overthrow the government in Thailand has caused ripples in the value of the Thai Baht (their currency.) The US Dollar has gained considerably against the Baht, as a flight to safety is taking place.

Finally, we wanted to drop a quick note that we missed not expressing our thoughts last night to everyone, as it was the first time in a while we did not write a commentary. Unfortunately, as we mentioned in our emails, we just don’t currently have the time to do a nightly commentary and will be releasing it Sunday, Tuesday, and Thursday evenings to our subscribers. Hopefully this will change in the near future as we “beef” up our customer service staff.

Technical Indicators

Eur/Usd
The weak Euro-Zone Zew data, which measures different opinions on the economy by analysts and institutions, brought this pair back down in the .2600’s. This was somewhat disappointing to Euro bulls as this pair reversed nicely to reach high’s of .2730. If this pair consolidates in the .2640-.2680, this could be a VERY weak sign for the Euro. Please contact us for further clarification. Our Euro strategies are showing a slight Dollar long bias

Usd/Jpy
After bottoming out at 117, this pair is back in the range we noted on Sunday, 117.50-118. The movement hasn’t done much to change our Yen strategies overall bias on Dollar long. Weak consumer demand data was the cause of the rebound back to the safe 50 point haven. The chart still appears to be bearish towards the yen, but it better stop consolidating below 118 to continue this sentiment.

Usd/Chf
Our support of .2550 from Sunday evening was off, as this pair has reached lows of .2485. There has been no news as of late to support or damage the Franc. The up and down movement has been caused by it’s counter-currency, the Dollar. After changing their mind quite a few times as of late, our Swiss strategies are showing a net Dollar short bias, for what it’s worth. Let’s use .2460-.2560 as the current range.

What Our Strategies Are Telling Us as of 9/19, 8:00 PM ET:
We have 10 strategies that we will report to our clients on a daily basis in regards to their respective dollar bias. Our intent is not to provide investment advice to those who read this following section. We are merely reporting the biases that our strategies are exhibiting.

Eur/Usd
$ Long Bias
Usd/Jpy
$ Long Bias
Usd/Chf
$ Short Bias

The past two sessions haven’t been too kind to our strategies, as the choppiness has caused a few stop outs in both our Euro and Swiss strategies. The Franc’s movement has been the most nonsensical of them all. The schitzophrenic movement of the market apparently has prompted quite a few of our strategies to stay on the sideline to watch as participation is back down around 30%.

Thank you for your continued support, and keep track of our strategy progress at: http://www.fxstreet.com/technical/si...acker/tracker/ along with the equity charts and real-money profit and loss report on our website. If you would like to receive our commentary before it is released to the public for free in PDF format, please send us your e-mail, and we will gladly include you on the subscribers list.

T2
www.tsquaredtrading.com